Rising fuel prices in Cyprus and government relief measures

Fuel prices in Cyprus have experienced significant increases between February 27 and late March 2026, driven by geopolitical instability in the Middle East. Reports indicate varying price fluctuations, with gasoline 95 reaching approximately 1.55 to 1.57 euros per liter and diesel climbing to 1.79 to 1.82 euros per liter, while heating oil rose to 1.30 euros per liter. Regional variations exist, as the Retail Fuel Price Observatory noted cheaper options in districts like Larnaca, specifically Aradippou, compared to national averages. To address the resulting cost-of-living pressure, the government announced a reduction in the fuel excise tax by 8.33 cents per liter effective at the end of the current week. Furthermore, President Nikos Christodoulides confirmed that the excise tax will be lowered from April through June. Additionally, the government decided against implementing a planned green tax that would have increased prices by 9 cents. These measures aim to mitigate the financial impact on households that rely heavily on private vehicles due to limited public transport options.